Our biggest stories of the week are …
I've posted a few items about the Deutsche Börse this week.
Most of you will know about algo trading. If you don’t, it’s just a fancy way of saying automated trading and if you checkout the stats, 80% of trading in London is automated today compared to just 40% four years ago and virtually none a decade ago. Some say it’s bad and, just as you get to grips with what these systems can do, along come algorithmic newsfeeds.
After saying yesterday that we need better risk management systems to
avoid a future meltdown, I was fascinated to hear the news about Eurex
Clearing’s developments. The presentation was titled:
“Innovation in Risk Management”, and I was intrigued from
the start. Innovation and Risk? Surely they shouldn’t be
placed together as innovation is risk, isn’t it? Maybe
not. What Eurex Clearing is introducing is a circuit breaker
system for trading firms to avoid over-exposure in the markets intra-day
and in real-time.
Since I first met the Deutsche Börse guys, I’ve found it
challenging to work out where they are. Y’see, last year I
went to Börsenstraße in Frankfurt, as you would assume that
the Borse would be in the street named after it. Well, it used to
Meanwhile, a few other items:
I had a reach out from Patrick Young, investment advisor, author of "The
Exchange Manifesto" and regular commentator on capital markets. Patrick co-authored an opinion piece about the nationalisation of the Bulgarian Stock Exchange in the Wall Street Journal yesterday. It appears to be an unfair and potentially destructive move.
Andrew Healy, Chief Executive of the National Irish Bank (NIB),
presents ideas for modernising payments in Ireland in a new report
released this week. He argues for two key objectives for 2013: reduce
cheque-use by 95% and reduce cash usage to below the EU average.
For a long time now, we’ve known that Ireland’s a mess when
it comes to money.
I've used a video from Visa Europe to illustrate what real-time
payments processing means in practice for a while now, and finally
tracked it down. It's a good video, tracking the journey of a payment from a Swedish bank customer using a mobile contactless phone in China.
As mentioned the other day, I will be at this year’s SWIFT Show
SIBOS focused upon a dialogue around the Long Now. The aim is to find
some big super-crunchy questions about the long view of banking and
finance, such as: "When will we know there won't be another
financial meltdown like the one we've just seen?"
The BBC recently reported that Sumo Wrestlers were to be given iPads as
it makes them easier to use, but it's not just Sumo Wrestlers that need
such systems. It seems many traders do too, as illustrated by these
stories of fat fingered fails over the past few years.
OK, you're all back from work and feeling the post-summertime holiday blues … now think about your company. Most of you probably work for a large business. An elephant of a company. So think about how to make the Elephant dance … now stick him on a trampoline.
Last year, we performed a major survey in anticipation of the
implementation of the PSD and SEPA Direct Debits, to see how the world
viewed these areas. This year, we're doing it again. Click here to take the survey.
The major general news stories of the week include …
Former academic who has built Barclays Capital from scratch into a multibillion-pound operation, will take over from John Varley at Barclays' annual meeting next March
Barclays yesterday squared up to its critics by appointing the man who has come to epitomise casino capitalism as its new chief executive.
Barclays announced today that it is to create up to 600 jobs in Scotland, providing a much-needed boost to the financial services industry.
Banks need to do more this Christmas than hand out bumper cheques to their staff, says Boris Johnson.
HSBC may quit its London headquarters if the UK government decides to break up big banks, a senior executive says.
The Irish Government will today ask the European Commission for permission to "decommission" the nationalised Anglo Irish Bank.
The Irish Finance Minister will meet the EU Competition Commissioner Joachim Almunia today to discuss the fate of the collapsed Anglo Irish Bank.
Ben Bernanke, chairman of the Federal Reserve, yesterday told us what he thinks is the most important lesson to learn from the financial crisis. Drum roll. And the answer is?
Metro Bank yesterday claimed to have beaten its target for new account openings this year in the space of just a month.
High Street banks have been accused of leaving some customers in "dire poverty" after taking money out of their accounts without permission.
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